Reasons Your Business Should Switch to the New EMV Chip Technology
Has your organization started processing credit card requests with EMV chip technology? If not, you probably will want to consider an upgrade on your credit card acceptance system soon. EMV, which stands for Europay-MasterCard-VISA, technology is sweeping America, and it’s taking a bite out of the huge problem of credit card fraud. So what does that mean for your company? In a nutshell, using a credit card chip reader can help reduce your liability and bring down the soaring costs of doing business.
Why EMV Chips Are Safer Than Magnetic Strips
EMV chip technology has been used in Europe for a decade and in Canada for several years. In essence, credit cards are embedded with microchips. The microchips carry encrypted data and enable you to more securely process transactions. Unfortunately, magnetic strips — the same technology that was used in cassette tapes, remember those? — are too easy for skimmers to hack. EMV chips make it more difficult for thieves to steal information, so those thieves are more likely to move along.
How You Can Avoid Fraud Liability By Using the EMV Chips
Another benefit for businesses that become early adopters of the EMV chip technology is they collectively begin to lower the frequency of credit card fraud. The fewer credit card fraud events, the less the insurance companies will have to pay out. This can add up to millions of dollars each year that is kept within the insurance carrier’s system, not paid out in response to fraud charges. That can translate to lower premiums for companies over time, which is good for local, national and even global economies.
Is There an EMV Chip Deadline?
At this point, there is no hard and fast date that organizations like yours need to employ EMV chip technology. No credit card reader chip law has been passed making it mandatory. However, it’s likely that at some point, it’s going to be the gold standard in credit card processing.
If your current credit card processing equipment is in need of an upgrade anyway, why not choose the latest model that accepts credit cards embedded with EMV chips? Though you may have to pay a little bit upfront, it’s an investment that will show customers you’re supportive of keeping their information safe. That, in turn, will help them feel more comfortable when buying from you. In the end, it’s a win-win choice you may have to do in the future anyway.